Investor Presentation

January, 2017
Forward-Looking Statements
The statements and discussions contained in this presentation that are not historical facts constitute forward-looking statements, which may be identified by the
use of forward-looking words, including but not limited to, believes, expects, may, intends, anticipates, plans, estimates and analogous or similar
expressions intended to identify forward-looking statements. These forward-looking statements and estimates as to future performance, estimates as to future
valuations and other statements contained herein regarding matters that are not historical facts, are only predictions, and that actual events or results may differ
materially. We cannot assure or guarantee you that any future results described in this presentation will be achieved, and actual results could vary materially from
those reflected in such forward-looking statements due to numerous known and unknown risks and uncertainties, including the Risk Factors described in our
filings with the Ontario Securities Commission and the U.S. Securities and Exchange Commission. Information contained in this presentation has been compiled
from sources believed to be credible and reliable. However, we cannot guarantee such credibility and reliability. The forecasts and projections of events contained
herein are based upon subjective valuations, analyses and personal opinions. All forward-looking statements are qualified in their entirety by this cautionary
statement, and Novadaq undertakes no obligation to revise or update this presentation to reflect events or circumstances after the date hereof.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Such an offer or solicitation, if made, will only be made
pursuant to an offering memorandum and definitive subscription documents.

NOVADAQ, SPY, PINPOINT and LUNA and the illumination square design are registered trademarks of Novadaq Technologies Inc. LifeNet Health and
DermACELL are registered trademarks of LifeNet Health.

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Large Market Opportunity

Platform Technology
U.S. Market Annual Opportunity
NOVADAQ is the only company that
provides proven comprehensive
fluorescence imaging solutions that
improve clinical outcomes and reduce
healthcare costs in minimally invasive $2.7B
and open surgeries SPY Imaging
Technology
SPY Fluorescence Imaging
Enables precise real-time visualization of Breast
physiologic blood flow in vessels, tissue Tissue
perfusion and critical anatomical $400M
structures

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SPY Fluorescence Imaging

The surgeon ICG is injected SPY Technology emits Real-time fluorescence

positions the SPY intravenously and rapidly near infrared light is captured and images are
technology over the binds to proteins in causing displayed on a video
area of interest circulating blood ICG to fluoresce monitor in the OR

SPY Elite or LUNA

SPY PHI

PINPOINT

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Comprehensive Solution Provider

Directly Sold Products Licensed Product

SPY ELITE PINPOINT LUNA

OPEN MINIMALLY INVASIVE WOUND HEALING
FireFly
SURGERY SURGERY
ROBOTIC SURGERY

Since 2015, NOVADAQ is the

exclusive worldwide distributor
of LifeNet Healths Dermacell
tissue products

Leverages clinical and call point

synergy between the use of partnership with
tissue matrices and the ability
to assess the quality of tissue
perfusion

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Key Applications U.S. Market
Annual Emerging Annual
Applications Existing Procedures
Opportunity Procedures* Opportunity

GYN Onc 200,000

Breast Reconstruction 100,000 Breast Surgery 250,000
Cancer and
Head and Neck Reconstruction 150,000 Lymphedema 150,000
Reconstructive Melanoma 150,000
Gastrointestinal Surgery 450,000
Surgeries Gastric Cancer 100,000

Vascular Surgery 600,000+

Non-Cancer
Laparoscopic Cholecystectomy 900,000+
Surgeries Coronary Artery Bypass Surgery 350,000

Diabetic, Arterial and Venous

Wound Care Stasis Ulcers
600,000

*not yet cleared for market by the U.S. FDA |6

 Seeing the Formerly Unseen
Breast Reconstruction Colorectal Surgery Laparoscopic Cholecystectomy
Cystic artery
Non-perfused Cystic duct

ONE Poor perfusion colon

TECHNOLOGY
MULTIPLE!
Non-perfused
APPLICATIONS! colon
Common
Bile Duct
Visualize tissue perfusion Assess tissue perfusion, guide transection margins Visualize critical anatomy

Visualizing physiologic Head and Neck

Gynecological Oncology* Reconstruction Vascular Surgery
blood flow in vessels,
tissue perfusion and Lymph node
Lymph node Non-perfused
critical anatomy toe
enables surgeons to
take action in
surgery that
improves outcomes

Visualize lymph nodes, guide removal Visualize blood flow and tissue perfusion
Visualize tissue perfusion
* Not yet cleared by U.S. FDA
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Compelling Advantages

NOVADAQ offers the ONLY imaging technology that allows real time, visual physiologic assessment
and objective analysis of blood flow in vessels and tissue perfusion in the operating room

Improved Patient Care Economic Process & Workflow

Point-of-Care imaging: Reduces rates of Supports critical

vascular flow, perfusion,
lymph nodes
Improves outcomes
Enables procedures
post-op complications decisions in operating
room
Avoidable post-op
complication costs range Reduces procedure
from $10k $100k time

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SPY Benefits Breast Reconstruction
Mayo Clinic Study, Jacobson et al (n=942)

Breast Reconstruction
Authors estimated the Without SPY With SPY
2011-2013
potential avoidance of
No. of Patients 590 352
59 episodes of skin
necrosis over 5 years Any Complications 100 (17%) 21 (6%)
through the use of Skin Necrosis 32 (6%) 2 (1%)
SPY Technology
Nipple Sparing Procedures 28% 32%
Single Stage, Direct Implants 7% 23%

Potential cost savings of ~

$850K over 5-yrs Use of SPY enabled more nipple sparing and direct implant
reconstruction procedures
SPY Benefits Colorectal Surgery
SPY Technology
provides
Results of Two Multi-Center Clinical Studies: ACTIONABLE
images that
US: Stamos, et al (n=139)
Europe: Ris, et al (n=460) enable surgeons
to reduce
anastomotic leaks
and complications
Anastomotic Leak Rate in Colon Resections
3% - 15%
Cost of complication
$29k - $95k

PINPOINT drove a change in surgical plan

in 8% of patients
1% 2%
Anastomotic leak rates were0%
in those patients where a change was made
Traditional PINPOINT Imaging | 10
Lymphatic Mapping
Lymph Node Mapping in Gynecological Oncology
Memorial Sloan Kettering Study, Abu-Rustum et al (n=227)

Visualization of lymph node in simultaneous

Study Results:
Enabling Surgeons to
White Light, SPY, PINPOINT and CSF display modes
Visualize Lymph Nodes More Efficiently Lymph Node

Overall detection rate

81% with Methylene Blue Lymph Node

Overall detection rate with

95% Indocyanine Green
Lymph Node

Bilateral detection rate

61% with Methylene Blue
Lymph Node
Bilateral detection rate
79% with Indocyanine Green
Fluorescence Imaging in Lymphatic Mapping

Goal is to obtain FDA approved label

claim for Lymphatic Mapping
Randomized, controlled, multi-center
North American study of 150 patients
with gynecological cancer
Investigators are Society of
Gynecological Oncology Leadership-
Principles are Memorial Sloan
Kettering and MD Anderson
Recruitment to be completed
Q1-2017

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Khoury-Collado F, St Clair C, Abu-Rustum NR. Oncologist 2016

DermACELL Breast Reconstruction - The Next Generation ADM
Comparison of Different Acellular Dermal Matrix (ADM) in Breast Reconstruction: The 50/50 Study. Pittman et al. 100
consecutive patient study -- 50 patients with Alloderm, 50 with Dermacell, 60 day minimum follow-up.

DermACELL AlloDerm p

Red Breast 0 13 (26%) 1x10-4

Drain Duration (days) 15 21 0.001 Patients reconstructed with

Dermacell have
Infection 0 2 (4%) 0.494 IMPROVED OUTCOMES
across several metrics
Seroma 5 (10%) 12 (24%) 0.108

Reconstructive Failure 0 4 (8%) 0.117

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Leadership and Validation in the Field

75+ 230+
250,000+!

Documented Peer Reviewed

75+!
>40%
Applica0ons Publica0ons

Growth in

250,000+ 875+
Recurring Revenue

SPY Technology SPY Systems

Procedures Installed Base*

* Data as of Sept 2016 1/10/17 | 14

Leveraging the Model
Multiple Recurring
Large installed base comprehensive revenue
solutions stream
Top 50 Cancer hospitals use SPY technology today
Call-point synergies
One surgical call point, opportunity across multiple specialties
Propagation across accounts and systems

Flexible acquisition models drive hospital sales Extensive body

of supporting
Sales & service contracts clinical evidence

Component sales, cameras, scopes, disposables, software, etc. Large

installed
Product innovation and leadership base
Broadest portfolio for use across open and MIS applications
On-going clinical studies
230+ peer-reviewed publications Call point Flexible
synergies acquisition
Superior medical and peer to peer education models

1/10/17 | 15
Installed Base Opportunity

Hospital Setting Systems per Hospital Potential Installed Base

550 Teaching
Hospitals
6.0 3K Systems Expected recurring
revenue of $100K
49 per system drives
5,174 Community
Hospitals 2.5 13K Systems
$2.7B
Annual
5,260 Ambulatory Opportunity
2.0
11K Systems
Surgery Centers

1/10/17 | 16
Sales Process

Physician Clinical and Hospital

Evaluation Economic Benefit Administration
& Buy-in Analysis (VAC committee)

Identify appropriate & available budget within hospital

Combination of
Consumables & Service
Capital Equipment Capital
Components Contracts
& Recurring

1/10/17 | 17
Case Study Large Teaching Hospital
Benefits
Background

1,183 beds Multiple system

>50K annual admissions Solution placements ensure SPY
Technology is readily available
>60K annual surgeries
Flexible model enabled
hospital to identify funding within Multi-year agreement creates
service and operating budgets barrier
73 to acquisition of
Situation competitive technology
NOVADAQ was engaged in capital Closed a 4 system
agreement over 3 years
purchase discussions on
4 systems 49 Fast cycle time acquisition
including service and consumables occurred in <30 days

No capital budget Long term committed

at hospital
recurring revenue for
Competitive trialing NOVADAQ
underway
1/10/17 | 18
Continuous Innovation and Leadership

NOVADAQ Clinical Investigations and Continuous Innovation

Development Efforts Studies Enables

Performance Barriers of entry remain high

improvements to existing
technologies
Additional lymphatic Deeper penetration into
studies hospitals with new indications
Innovation designed to and improved products
address gaps in continuum
of care
Studies in collaboration
with medical societies (i.e. Expanded market
lap chole/SAGES) opportunities
Functional innovation
delivering additional
clinical and economic Drives recurring revenue
benefit

1/10/17 | 19
PINPOINT Growth Drivers New Product Launches

S1 Camera 5mm Laparoscopes SPYPHI Portable Handheld Imager

Brilliant, high-definition, Workhorse of surgery Superior quality images and convenience
white light video Segue to re-enter CABG market with
Supports ASC market entry
Added benefit of SPY small footprint, convenience & superior
and penetration
Fluorescence imaging image

Benefit Benefit Benefit

Results in incremental revenue, Allows for increased penetration Enables entry into ASC market- focus on
increases competitiveness into lap chole, CRS, gynecological mastectomy, plastics and breast reconstruction and
oncology, thyroid surgery lymphatic mapping*
*Lymphatic mapping is not yet cleared for market by the U.S. FDA 1/10/17 | 20
SPY Technology versus Competition

Competitive Fluorescence SPY Technology Benefits

Enables accurate, real-time

Image dark and noisy Image vibrant and clear
Perfusion analysis

Arbitrary image adjustment

compromises meaningful Enables better tissue
Image adjustment stays true
assessment
tissue perfusion assessment

Intensity is highly dependent Intensity is maintained at any

on distance to tissue Enables superior imaging
distance

Enables broader potential

Single fluorescence mode Multiple fluorescence modes
application

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Quarterly Results*

Q3-2016 Q3-2015 Change Y/Y Q3 2016 Metrics

Revenue (millions) Recurring Revenue

Recurring $8.6 $6.1 + 42%
47% of direct sales

Capital $9.7 $7.7 + 25%

Installed Base
Total Direct $18.3 $13.8 + 32% 60 systems placed
Partnered/International $3.9 $3.2 + 20%
Revenue per System
Total $22.2 $17 + 30%
$9,821

Installed Base Gross Margin

72%
Direct Systems 875 647 + 35%

* Data as of 3Q 2016
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 Financial Performance
Total Revenue ($mn) Recurring Revenue ($mn)
2016 Growth: 26% y/y 2016 Growth: 41% y/y

$22.2 $9.5
$21.1
$20.2 $8.6

$7.8
$17.7
$7.0

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Gross Growth
71% 72% 72% 41% 38% 42% 42%
Margin: Rate:

1/10/17 | 23
Financial Objectives

Total Revenue: $98mn - $102mn

Growth (y/y): 22% - 27%
2017 Financial Guidance
Recurring Revenue: $48mn - $50mn
Growth: (y/y): 45% - 51%

Shift revenue mix from capital to recurring revenue

Manage opportunity vs. profitability

Long Term Objectives Maintain gross profits in the 65%-70% range

Maintain a strong cash position

1/10/17 | 24
Leading Fluorescence Imaging Technology
Differentiated & Disruptive
Leader in fluorescence imaging technology
Technology

Large Untapped ~5% Penetration

Market Opportunity >3.5mn annual procedures

Strategy focused on
More predictable, longer runway, better quality
Recurring Revenue

Meaningful Innovation, clinical data, IP, market leadership position; value

Growth Drivers proposition (clinical and economic)

Clinical and Cost

Reduced costs benefitting healthcare system and patient
Benefits

Solid Growth
2017 Rev Guidance: $98-102 million; 22-27% YoY growth
Prospects
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